Buying USD/CHF Above MAs - Forex News by FX Leaders
USD/CHF H4 chart

Buying USD/CHF Above MAs

Posted Thursday, January 21, 2021 by
Skerdian Meta • 1 min read

The USD/CHF has been bearish for nearly a year, since last March, after the big swing in the previous month. Moving averages have been doing a great job in providing resistance during pullbacks lower and keeping the pressure to the downside for this forex pair.

But the decline might have stretched too much after falling to 0.8750s at the beginning of January. Buyers returned and pushed the price above the moving averages on the H4 chart and a resistance zone formed around 0.8920s, while at the bottom, the 100 SMA (green) formed a support zone around the 0.8860 level.

This moving average has been holding as support for more than a week, while the 200 SMA (purple) has joined in, which is adding strength to the decline. The stochastic indicator is also showing that the price is oversold now for the USD/CHF, so we decided to open a buy forex signal above the 100 SMA, hoping for a bounce from there.

 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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